Tunisia Public Expenditure Review - A New Pact for the Transition - Modernizing the State for Better and Fairer Public Spending

Jul 19, 2026

Upload by Skyler

Tunisia’s Public Expenditure Review presents an overarching agenda to reshape public spending during the transition period. The overview report focuses on creating fiscal space for growth and equity, strengthening public sector performance, and building a more sustainable pension system. It also addresses social assistance reform toward targeted safety nets, improves education spending efficiency, and enhances health system effectiveness. The review further examines energy, water services, and land transport reforms to support competitiveness, jobs, and more inclusive, greener service delivery.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages79

Reading Time3 h 19 min

Executive Summary

Introduction

Chapter 1: To Turn the Tanker Around: Creating Fiscal Space for Growth and Equity-Enhancing Public Spending

Chapter 2: The Mother of All Reforms: Improving the Performance and Productivity of the Public Sector

Chapter 3: Time for Change: Building a More Sustainable and Equitable Pension System

Chapter 4: Renewing the Social Assistance Contract: From Subsidies to Targeted and Expanded Safety Nets

Chapter 5: Tackling the Next Challenge on Education: Efficient Spending for Learning

Chapter 6: Better Care: Improving the Efficiency and Equity of the Health System

Chapter 7: The Energy to Move Forward: Toward a More Efficient and Greener Electricity Supply

Chapter 8: Valuation and Conservation: Toward More Secure and Sustainable Water Services

Chapter 9: Paving the Way Forward: Improving Land Transport Services for Competitiveness and Jobs

References

Public Disc losure Authorized Tunisia Public Expenditure Review A New Pact for the Transition Modernizing the State for Better and Fairer Public Spending Overview Report To download the report Pub lic Disclosure Authorized Pub lic Disclosure Authorized Tunisia Public Expenditure Review A New Pact for the Transition Modernizing the State for Better and Fairer Public Spending Overview Report Contents Acknowledgments v Executive Summary vii Introduction 1 Chapter 1: To Turn the Tanker Around: Creating Fiscal Space for Growth and Equity-Enhancing Public Spending 5 Chapter 2: The Mother of All Reforms: Improving the Performance and Productivity of the Public Sector 9 Chapter 3: Time for Change: Building a More Sustainable and Equitable Pension System 15 Chapter 4: Renewing the Social Assistance Contract: From Subsidies to Targeted and Expanded Safety Nets 21 Chapter 5: Tackling the Next Challenge on Education: Efficient Spending for Learning 29 Chapter 6: Better Care: Improving the Efficiency and Equity of the Health System 35 Chapter 7: The Energy to Move Forward: Toward a More Efficient and Greener Electricity Supply 41 Chapter 8: Valuation and Conservation: Toward More Secure and Sustainable Water Services 47 Chapter 9: Paving the Way Forward: Improving Land Transport Services for Competitiveness and Jobs 53 References 59 LIST OF FIGURES Figure 1.1 GDP and export growth, 1980–2007 ....................................... 5 Figure 1.2 Key macroeconomic indicators, 2000–07 vs. 2008–10 ......................... 6 Figure 1.3 Fiscal deficit and public debt, 1990–2016 ................................... 7 Figure 2.1 Wage bill spending: international comparison ............................... 9 Figure 2.2 Government effectiveness and wage bill spending ........................... 10 iv Public Expenditure Review: A New Pact for the Transition Figure 2.3 Composition of wage bill spending (% total) ............................... 11 Figure 3.1 Determinants of pension cost: dependency and support ratios.................. 16 Figure 3.2 Pension deficit under the modernizing package ............................. 19 Figure 4.1 Energy subsidies received by welfare quintile, 2015/16 (TND millions) .......... 23 Figure 4.2 Food subsidies received by each welfare quintile, 2015/16 (TND millions) ....... 24 Figure 4.3 Social assistance expenditure as a share of GDP ............................. 25 Figure 4.4 Cash transfer coverage of poorest quintile (%), various dates................... 26 Figure 5.1 Gross and net enrollment rates (GER and NER) ............................ 29 Figure 5.2 Public spending in education ............................................ 30 Figure 5.3 Wage bill spending in public education .................................... 31 Figure 5.4 Student-to-teacher and student-to-administrative ratio ....................... 32 Figure 5.5 Repetition rates by governorate (primary, secondary, and high school) ........... 33 Figure 5.6 Dropout rates by governorate (secondary school) ............................ 34 Figure 6.1 Total health expenditure: international comparisons, 2012–15 averages (% of GDP) .......................................................... 36 Figure 6.2 Relative efficiency of health spending ..................................... 37 Figure 6.3 Input and functional allocation of health spending (all values represent share of spending in %) ..................................................... 38 Figure 6.4 Disparities in health services and spending ................................. 39 Figure 7.1 STEG technical losses,% of injected power ................................ 42 Figure 7.2 STEG borrowing ..................................................... 43 Figure 7.3 Gas turbines (GT) installed capacity and production,% of total ................ 44 Figure 8.1 Renewable water resources, cubic meters per ca

FAQs

What is the main objective of the Tunisia Public Expenditure Review?

The review outlines a transition-focused agenda to modernize public spending, improving equity, efficiency, and sustainability across key sectors.

Which reforms are proposed for pensions and social assistance?

It calls for building a more sustainable and equitable pension system and renewing social assistance by shifting from generalized subsidies to targeted and expanded safety nets.

How does the report address spending in education, health, energy, water, and transport?

It analyzes efficiency and equity in education and health, and evaluates reforms to make electricity supply more efficient and greener, water services more secure and sustainable, and land transport services more supportive of competitiveness and jobs.

Jul 19, 2026

Upload by Skyler